America's Biggest Fitness Club Franchise Aims To Be Not Just For New Year Resolutions

Anytime Fitness, with more than 3,000 gyms globally, claims to already be the world’s fastest-growing health club franchise. And co-founder and chief executive Chuck Runyon says his ambitious opening plans are no mere New Year resolution.

Formed in Minnesota in 2002 by Runyon and co-founder Dave Mortensen, the chain believes it can have 5,000 sites by 2021.

That may sound fanciful but the company has a solid track record in rapid growth.

In the U.S., where it is the largest mixed gender franchised fitness chain, it now has nearly 2,000 sites, with a presence in all 50 states. and is nearly halfway to a target of between 4,000-4,500. It particularly wants more gyms in the North-East and West coast.

In Australia, where Anytime Fitness opened its first gym in 2007, the brand now has 450 sites and is planning to get to a total of about 600.

And in the U.K., Anytime Fitness has 55 gyms open and claims it will surpass the company created from the merger of Pure Gym and LA Fitness as U.K. market leader in gyms in 2016.

Anytime Fitness has already sold another 180 U.K. franchise territories than have not yet opened and believes it has the potential to have 500 venues nationwide, making it five times the size of the current largest operator.

“Over the next five years, we anticipate opening up more than 400 gyms each year, with more of those happening globally outside of the U.S.,” says Runyon.

“So in five years from today, we could be at more than 5,000 locations and beyond that we still have plenty of room to grow internationally so I don’t see any reason why we could not have 10,000 or more.

“There are more than 5,000 franchises brands out there, but only 1pc of them exceed 1,000 units. If you consider that our 3,000 are in more than 20 countries, that’s got to be pretty rare.

“I think it’s a combination of a simple business model and a fitness industry that’s been growing over the last decade, as well as low interest rates and the abundance of space available in the real estate market. If you add all of that up, I think it’s very scaleable growth.”

It prides itself on offering private bathrooms, as opposed to shared locker rooms, and 24 hour access to its clubs.

“In the U.K., the consumer pool continues to grow," says Runyon. "In the U.K., for example, 13 percent of the population, is a gym member. Imagine getting that to 20 per cent or 25 percent. There’s plenty of upside here for the consumer pool to grow.

"More people entering the fitness market means more gyms are going to be necessary.

"I think there's awareness now of the relationship between diabetes, obesity and physical inactivity.

"I look across other countries and I do believe that spending on consumer wellness globally is going to increase. It means better nutrition and better health."#

Runyon believes that Anytime Fitness's franchise model has been instrumental in its growth.

"I think franchising helps you grow because you're utilising the local owners' passion and capital to grow faster and gain scale," he says.

Franchising has been slower to take off in the U.K., however, which Runyon attributes to planning regulations.

"There are far more regulations in the U.K. in regard to site selection and approval," he says.

"Typically, it can take a year from identifying a site to getting all the local governmental approvals necessary to open. We don't have that in the U.S. When you find a site, you can probably get it open within months."